Latest increase – the third this year for the company – gs 'live' on July 1, adding £650 to the price of a Fiesta.
If you’re about to buy a new Ford, get those running shoes on and head for your dealer. The company has just announced a 4.0% rise in prices – effective on orders placed after June 30.
Ford blames the rise – the third this year – on the weakness of the £ against the Euro. The company also upped prices by 4.7% in February and 3.75% in April.
The latest increases add £600-£650 to the price of a Ka, Fiesta, Focus or Mondeo, while an S-Max will cost £700 more and a Galaxy will go up by £800.
Ford says that the exchange rate between the two currencies had remained stable for 10 years at about 1.4 euros to the £, but had recently fallen to only 1.16 euros, where it stands today.
Nigel Sharp, managing director of Ford in the UK said: ‘with so many of our costs priced in euros, there is no choice if we are to maintain a viable business.’
While Ford has a number of factories across the UK, they build vans and car engines and gearboxes. None assembles cars, and many of the vehicles sold here are put together in Germany and Spain.
Mr Sharp said the drop in the exchange rate on a car priced at £15,000 is close to £3500.
This cost ‘had to be absorbed by the business.’However, he acknowledged that raising prices during a recession, and with a scrappage scheme in operation, ‘may seem counter-intuitive’.
With this latest increase, Ford’s rises this year will have cancelled out most of the savings available from the government’s scrappage scheme, which gives buyers a £2000 saving is they trade in a car that is at least 10 years old.